Moody's issued a first-time
The rating decision factors in the Chinese developer's baseline credit assessment, or BCA, of ba3 and the possibility of it being supported through government subsidies, capital or asset injections and more in times of stress.
The ba3 BCA comes on the back of Wuhan Real Estate's large asset base, predictable future cash flow and synergy between its public policy related activities and commercial property development business.
Among the factors limiting the company's BCA, Moody's noted its exposure to the volatile land and property markets, its sizable CapEx pursuant to shantytown renovation projects and the uncertainty that stems from policy changes.
The stable outlook reflects Moody's expectation that Wuhan Real Estate will keep its credit metrics at levels that satisfy its ba3 BCA and will remain important to the Wuhan government over the following 12- to 18-month period.
